Hibernian General Insurance has announced details of a partnership programme with business owners for handling claims.

The insurer said employer and public liability policyholders would be kept informed at all stages of any claim and jointly decide how to best handle each case.

Mr Ciarán Mahon, head of Hibernian's customer relations and marketing department, said criticism had been levelled at insurance companies for settling out of court without notifying the client in order to avoid high legal costs.

The partnership programme follows moves by Hibernian to reduce insurance costs for small businesses, including a 10 per cent discount for users of its risk management software and a further 15 per cent to companies that agree to pay the first €5,000 of any claim.

Both Hibernian and Axa Insurance have also recently recruited specialist fraud investigators to help identify and combat fraudulent and exaggerated claims.

According to a recent survey by employers' group IBEC, the cost of employer and public liability insurance - protecting against the risk of injuries to staff and customers - more than doubled between 1999 and 2002.

Some high-risk sectors with larger numbers of claims such as manufacturing and the pharmaceutical industry have recorded rises in the cost of insurance of 200 per cent.